Migration, Local Fiscal Variables and Local Economic Conditions

The paper examines the effects of local fiscal variables and local economic conditions on exit decisions of Norwegian households. The study takes advantage of a unique survey data set in which respondents evaluate a range of local amenities and report whether they intend to relocate. We find that municipal services are important to exit decisions. Norwegian municipalities can increase the population share of young, educated households by improving living conditions for children and the quality of schools and cultural services. The estimated effects of personal unemployment, local unemployment and local wages on migration plans become weaker when amenity variables are included, indicating that capitalization of amenities cannot explain weak effects of local economic conditions on migration in Europe.